MRG Metals confirms potential for ‘significant discovery’ at Corridor Central heavy mineral sands project

First pass auger drilling by explorer MRG Metals (ASX: MRQ) at the Koko Masava heavy mineral sands target within the Corridor Central project in Mozambique has returned near surface, high-grade results and demonstrated potential for a significant discovery.

Assays from 16 holes drilled during the June campaign returned a total heavy mineral (THM) content of more than 3% over 10.5m from surface, with five holes ending in high grade (more than 5%) THM, indicating the high-grade mineralisation continues at depth.

Highlights included 10.5m at 5.43% THM, 10.5m at 5.13% THM, and 10.5m at 5% THM, all from surface.

It is the first data set for Koko Masava and confirms the target is mineralised from surface over an extensive area measuring approximately 18 square kilometres and open in all directions.

MRG said it would continue the auger drilling program to explore the edges of the mineralised footprint at Koko Masava by testing extensions in all directions.

The company is also preparing to commence a 5,000m aircore drilling program at the target later this month.

Significant discovery

Chairman Andrew Van Der Zwan said the first pass results confirm MRG could be sitting on a significant discovery.

“Koko Masava is nearby to the Mutamba heavy mineral sands project (owned by Rio Tinto (ASX: RIO) and Savannah Resources) which has an indicated resource of 1.78 billion tonnes at 3.8% THM,” he said ,

“[These assays] confirm our belief that we have the potential for a very significant heavy mineral sands project in this prolific province.”

He said auger drilling had proven to be a successful and cost-effective exploration methodology and would be an ongoing part of MRG’s work program initially commencing with follow-up extensional drilling.

On completion, the auger program will move to the Poiombo and Nhacutse prospects within Corridor, which are also scheduled for aircore drill testing this year.

Capital raising

Earlier this month, MRG completed a capital raising via share placement to fund the aircore campaign with a view to establishing a JORC-compliant mineral resource and kickstarting a scoping study.

The oversubscribed placement raised $661,500 through the issue 94.5 million ordinary shares at $0.007 per share to sophisticated and professional investors and retail private clients, together with 94.5 million free attaching options at an exercise price of $0.01 and an expiry date of December 2020.

The company will also shortly seek shareholder approval to raise an additional $199,500 via the placement of 28.5 million ordinary shares at an issue price of $0.007 per share, together with 28.5 million free attaching options to its directors.

At mid-afternoon, shares in MRG were steady at $0.008.